Parts of ILFC could be worth more than sum

Just look at the numbers: 1,046 aircraft worth $51.9 billion. That’s billion. ILFC is four times bigger than Aviation Capital Group or RBS Aviation Capital – both large lessors.

In the past ILFC has been described as a mega-lessor and although it is an ugly term it is true. It is no surprise that the sale of ILFC has been put on hold. Selling ILFC at the top of the aircraft leasing market in 2006 would have been an achievement. Selling it in one piece now would have been a deal of the century.

The obvious option is to split it into pieces. Sell the significant number of aircraft on lease to Chinese carriers to a local bank (ICBC would be most obvious buyer, but CIC – the state sovereign wealth fund is another). The Middle East leases could be sold to Abu Dhabi, Kuwait or Saudi). 

Hazy and the management team could take the rest and work with Greenbriar and Onex (who were also backed by large amounts of Middle Eastern money) and build a new ILFC.

While this is messier that selling it in one piece the deal risk is much, much lower.